Italy's labor minister says social welfare policies are essential inaddressing the global economic crisis. The minister spoke at the G8Social Summit in Rome.
Labor Minister Maurizio Sacconi saidsocial welfare policies could act as the motor for economic recoverybecause the task is to restore people's confidence in the future.
LaborMinisters from the G8, which comprises Italy, Japan, the United States,Germany, France, Britain, Canada and Russia are attending the SocialSummit meeting in Rome, as well as ministers from the G5, whichincludes Brazil, China, India, Mexico and South Africa.
Inaddition there are representatives from the International MonetaryFund, the Organization for Economic Cooperation and Development and theInternational Labor Organization.
Minister Sacconi insistedpeople must be considered above all. Each action we take, he said,even when we are thinking of the stability of banks must translate intothe well being of people. So if we support banks we do this so thatthey in turn guarantee liquidity to businesses.
He stressedthat the main priority is to guarantee the unemployed an income, but headded there are other fundamental needs to be addressed, such as healthand education.
Speaking about the daily growing concerns overthe financial crisis, Minister Sacconi urged internationalorganizations to foster an optimistic outlook. Italy's ForeignMinister Franco Frattini, who also addressed participants Monday, saidwhile there is cause for concern over trends in the labor market, it isbest to be cautious on interpreting employment figures.
OECDSecretary-General Angel Gurria warned the unemployment rate amongmember countries could approach 10 percent in 2010, compared with 5.6percent in 2007, according to data to be officially released Tuesday bythe Paris-based organization.
